Tier 1 is the highest-hazard wind band, generally the coastal strip nearest the shoreline where hurricane and named-storm risk is greatest. Property in Tier 1 typically carries the largest percentage wind deductibles, because insurers price the concentrated catastrophe exposure accordingly.
What it means for owners
In Tier 1, the dollar amount behind a percentage deductible is often at its most severe, and it applies per named event. That makes the retained exposure a central balance-sheet concern, and it is why buy-down demand is heaviest nearest the coast. A buy-down reduces the retained wind deductible to a chosen attachment point, following form to the overlying property policy on a difference-in-conditions basis. Availability and terms depend on the property and are governed solely by the terms of the issued policy.